The Accounting Cycle Project consists of 10 Requirements for you to complete. All of the information you need to complete the Course Project is located in the attached Excel Workbook.
• There are eight worksheets in the workbook you will need to complete.
• A list of January transactions
• A Chart of Accounts reference sheet
• A Grading Rubric to help explain what is expected.
• Each worksheet has the Check Figures embedded as a comment.
Scenario:
Moonlight Bay Inn is incorporated on January 2, 2017, by its three owners, each of whom contributes $20,000 in cash in exchange for shares of stock in the business. In addition to the sale of stock, the following transactions are entered into during the month of January: (See January Transactions Tab)
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2: Assignment ing Cycle Project
1 Prepare the in the Journal Entries General Ledger Prepare a Trial Balance Prepare the Adjusting Entries General Ledger 6 Prepare the Financial Statements Prepare the Closing Entries General Ledger Prepare the Click on the worksheet link to complete the corresponding Requirement or the
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Account
Requirement
Requirement Description
Worksheet
Part A
Journal Entries
General Journal
2 Post Journal Entries to the
General Ledger
3
Trial
Balance
Part B
4
Adjusting Entries
5
Post Adjusting Entries to the General Ledger
Prepare an Adjusted Trial Balance
Adjusted TB
7
Financial Statements
8
Closing Entries
9
Post Closing Entries to the General Ledger
10
Post Closing Trial Balance
Post Closing TB
Project Instructions
button below for an overview.
Project Instructions
/xl/drawings/drawing1.xml#’Project%20Instructions’!A1
Project Instructions
The Accounting Cycle Project consists of 10
for you to complete. The Accounting Cycle Project is due at the end of Week 4. All of the information you need to complete the Course Project is located in this Workbook.
• There are eight worksheets in the workbook you will need to complete.
• A list of January transactions
• A
reference sheet
• A
to help explain what is expected.
• Each worksheet has the Check Figures embedded as a comment.
is incorporated on January 2, 2017, by its three owners, each of whom contributes $20,000 in cash in exchange for shares of stock in the business. In addition to the sale of stock, the following transactions are entered into during the month of January: (See
Tab)
Before You Begin:
Review Chapters 3 and 4 (including appendices)
Print the Chart of Accounts and January Transactions worksheets for your reference. You will need to refer to both throughout the project.
Review the Grading
.
SAVE your work frequently in this workbook.
January Transactions
| During its first month of operation, Moonlight Bay Inn completed the following transactions. | |||||
| Date | Transaction Description | ||||
| Jan. 2 | Began business by each of the three owners contributing $20,000 in cash each in exchange for shares of stock in the business. | ||||
| A Victorian inn is purchased for $50,000 in cash. An appraisal performed on this date indicates that the land is worth $15,000, and the remaining balance of the purchase price is attributable to the house. The owners estimate that the house will have an estimated useful life of 25 years and an estimated salvage value of $5,000. | |||||
| Jan. 3 | A two-year, 12%, $30,000 promissory note was signed at Second State Bank. | Interest | |||
| Jan. 4 | New furniture for the inn is purchased at a cost of $15,000 in cash. The furniture has an estimated useful life of ten years and no salvage value. | ||||
| Jan. 5 | A 24-month property insurance policy is purchased for $6,000 in cash. | ||||
| Jan. 6 | An advertisement for the inn is placed in the local newspaper. Moonlight Bay pays $450 cash for the ad, which will run in the paper throughout January. | ||||
| Jan. 7 | Cleaning supplies are purchased on account for $950. The bill is payable within 30 days. | ||||
| Jan. 15 | Wages | ||||
| Jan. 16 | A guest mails the business $980 in cash as a deposit for a room to be rented for two weeks. The guest plans to stay at the inn during the last week of January and the first week of February. | ||||
| Jan. 31 | Cash | ||||
| Cash receipts from operation of the restaurant for the month amount to $6,600. | |||||
| Each stockholder is paid $200 in cash dividends. |
Chart of Accounts
| Use the following account descriptions for journal entries. | |||||||||||||||||||||
| Account Type | Account Number | Account | Title | Normal Balance | |||||||||||||||||
| Assets | |||||||||||||||||||||
| 111 | Debit | ||||||||||||||||||||
| 117 | Prepaid | Insurance | |||||||||||||||||||
| 119 | Cleaning | Supplies | |||||||||||||||||||
| 144 | Furniture | ||||||||||||||||||||
| 145 | Accum Dep -Furniture | Credit | |||||||||||||||||||
| 146 | House | ||||||||||||||||||||
| 147 | Accum Dep -House | ||||||||||||||||||||
| 148 | Land | ||||||||||||||||||||
| Liabilities | |||||||||||||||||||||
| 212 | Accounts Payable | ||||||||||||||||||||
| 213 | Notes Payable | ||||||||||||||||||||
| 214 | Wages Payable | ||||||||||||||||||||
| 215 | Utilities | ||||||||||||||||||||
| 216 | Rent Received in Advance | ||||||||||||||||||||
| 217 | Interest Payable | ||||||||||||||||||||
| 218 | Income Tax Payable | ||||||||||||||||||||
| Stockholders Equity | |||||||||||||||||||||
| 311 | Retained Earnings | ||||||||||||||||||||
| 312 | Capital Stock | ||||||||||||||||||||
| 313 | Dividends | ||||||||||||||||||||
| Revenue | |||||||||||||||||||||
| 411 | Revenue – Rental of Rooms | ||||||||||||||||||||
| 412 | Revenue – Restaurant | ||||||||||||||||||||
| Expenses | |||||||||||||||||||||
| 511 | Advertising | ||||||||||||||||||||
| 512 | Wages Expense | ||||||||||||||||||||
| 513 | Insurance Expense | ||||||||||||||||||||
| 514 | Supplies Expense | ||||||||||||||||||||
| 515 | Utilities Expense | ||||||||||||||||||||
| 516 | Depreciation Expense | ||||||||||||||||||||
| 517 | Interest Expense | ||||||||||||||||||||
| 518 | Income Tax Expense | ||||||||||||||||||||
| Other | |||||||||||||||||||||
| 999 | Income Summary |
Journal Entries
| REQUIREMENT #1: Prepare journal entries to record the January transactions in the General Journal below. Remember that Debits must equal Credits—All of your Journal Entries should balance.(Omit explanations) | |||||
| Description (Account Name) | Column1 | ||||
| – 0 | – 0 Harris, Nicole: Credits = $183,110 |
Journal Entries
For Account Names use accounts as listed on the Chart of Accounts tab.
Once you’ve completed this requirement print your General Journal to complete Requirement #2 on the General Ledger worksheet.
General Ledger
| REQUIREMENT #2: Post the January journal entries to the following T-Accounts and compute ending balances. | ||
| Cash (111) DeVry: The balance of the Cash account after posting journal entries for Part A should be $29,600 |
Accounts Payable (212) | Revenue – Rental of Rooms (411) |
| Notes Payable (213) | ||
| Revenue – Restaurant (412) | ||
| Wages Payable (214) | ||
| Advertising Expense (511) | ||
| Prepaid Insurance (117) | ||
| UtilitiesPayable (215) | ||
| Wages Expense (512) | ||
| Cleaning Supplies (119) | ||
| Rent Received in Advance (216) | ||
| Insurance Expense (513) | ||
| Furniture (144) | ||
| Interest Payable (217) | ||
| Accum. Depr.-Furniture (145) | Supplies Expense (514) | |
| Income Tax Payable (218) | ||
| House (146) | Utilities Expense (515) | |
| Retained Earnings (311) | ||
| Accum. Depr.-House (147) | ||
| DepreciationExpense (516) | ||
| Capital Stock (312) | ||
| Land (148) | ||
| Interest Expense (517) | ||
| Dividends (313) | ||
| Income Taxes | ||
| Income Summary (999) |
This worksheet will be used to complete Requirements #2, #5 and #9. Instructions for #5 can be found on the Adjusting Entries Worksheet. Instructions for #9 can be found on the Closing Entries Worksheet.
Trial Balance
| REQUIREMENT #3: Prepare a trial balance for Janurary in the space below. | |
| Moonlight Bay Inn Trial Balance | January 31 |
| 0 User: Debit Balance = $106,830 |
0 User: Credit Balance = $106,830 |
Journal Entries
Only enter accounts that have a balance.
List accounts in order of Account Number
Adjusting Entries
| Requirement #4: Prepare adjusting entries using the following information in the General Journal below. Show your calculations! a) Depreciation of the house b) Depreciation of the furniture c) Interest on the promissory note d) Recognition of the expired portion of the insurance e) Recognition of a portion of the guest’s deposit f) Wages earned during the second half of January amount to $5,120 and will be paid on February 3. g) Cleaning supplies on hand on January 31 amount to $230. h) A gas and electric bill that is received from the city amounts to $740 and is payable by February 5. i) Income taxes are to be accrued at a rate of 30% of income before taxes. |
|
| Requirement #5: Post the adjusting entries on Janurary 31 below to the General Ledger T-accounts and compute adjusted balances. Just add to the balances that are already listed. (Omit explanations) | |
| 0 Bruce: Balance $8,852 |
Journal Entries
Click here to go to the General Ledger worksheet to complete Requirement #5.
/xl/drawings/drawing7.xml#’General%20Ledger’!A1
Area to Show Work:
Adjusted TB
| REQUIREMENT #6: Prepare an Adjusted Trial Balance in the space below. | |
| Moonlight Bay Inn Adjusted Trial Balance January 31 |
|
| 0 User: Debit Balance = $114,222 |
0 User: Credit Balance = $114,222 |
Journal Entries
Only enter accounts that have a balance.
List accounts in order of Account Number
Financial Statements
| Requirement #7: Prepare the financial statements for Moonlight Bay Inn as of January 31 in the space below. You will only be preparing the | Income Statement | Balance Sheet | |
| Statement of Retained Earnings | |||
| For the Month Ending January 31 | For the Month Ending Janauary 31 | ||
| (enter figures in column B and totals in column C) | (enter figures in column I and totals in column J) | ||
| Revenues: | Retained Earnings, January 1 | Assets: | |
| From rental of rooms | Add: | Net Income | Current Assets: |
| From restaurant | Subtotal | ||
| Total Revenue | Less: Dividends | ||
| Retained Earnings, October 31 | 0 User: Retained Earnings = $1,748 |
||
| Expenses: | Total current assets | ||
| Property, Plant, and Euip.: | |||
| Depreciation | House, net of accum. Depr. | ||
| Furniture, net of accum. Depr. | |||
| Total Property, Plant, and Euip. | |||
| Total Assets | 0 User: $100,355 |
||
| Liabilities and Stockholders’ Equity | |||
| Total Expenses | Liabilities: | ||
| Current Liabilities: | |||
| 0 User: Net Income = $2,348 |
|||
| Income Taxes Payable | |||
| Rent received in advance | |||
| Utilities Payable | |||
| Total current liabilities | |||
| Long-term Debt: | |||
| Total Liabilities | |||
| Stockholders’ Equity: | |||
| Total Stockholders’ Equity | |||
| Total Liabilities & Stockholders’ Equity | 0 Charms: $100,355 |
||
| User: Net Income = $2,348 | User: $100,355 | Charms: Enter as a negative number |
Closing Entries
| Requirement #8: Prepare the closing entries at January 31 in the General Journal below. Hint:Use the balances for each account which appear on the Adjusted Trial Balance for your closing entries.(Omit explanations) |
||
| Requirement #9: Post the closing entries to the T-Accounts on the General Ledger worksheet and compute ending balances. Just add to the adjusted balances already listed. | ||
| EXAMPLE | ||
| 31-Jan Charms: Close out all revenue accounts |
||
| 31-Jan Charms: Close out all expense accounts |
||
| 31-Jan Charms: Close out income summary account to retained earnings |
||
| Charms: Close out all revenue accounts | 31-Jan Charms: Close out Dividends to Retained Earnings |
|
| 0 Bruce: Debit $31,380 |
Charms: Close out all expense accounts | 0 Bruce: Credit $31,380 |
Journal Entries
Click here to go to the General Ledger worksheet to complete Requirement #9.
/xl/drawings/drawing9.xml#’General%20Ledger’!A1
For instructions on how to prepare closing entries, view this link:
Closing Entries
https://accountingexplained.com/financial/cycle/closing-entries
Post Closing Trial Balance
| Requirement #10: Prepare a post-closing trial balance as of January 31 in the space below. | |
| Moonlight Bay Inn Post-Closing Trial Balance January 31 |
|
| 0 User: Credits = $100,580 |
Journal Entries
Only enter accounts that have a balnce
List accounts in order of Account Number
Grading Rubric
| Project 1 Grading Rubric – Students | ||||||||||||
| Exemplary | Proficient | Developing | NSW | |||||||||
| Parts: | 90% to 100% | 70% to 89% | 50% to 69% | Less than 50% | ||||||||
| Step 1 —Journal Entries (20 points) | Journal entries use accurate accounts and amounts; and debits and credits are used correctly. | Journal entries mostly use accurate accounts and amounts; and debits and credits are used correctly. | Journal entries have some errors in use of accounts and amounts; and debits and credits are only somewhat used correctly. | Journal entries have some errors in use of accounts and amounts; and debits and credits are not used correctly. | ||||||||
| Steps 2 and 3 —Posted and Unadjusted Trial Balance. (10 points) | Posting is correct leading to an accurate trial balance. | Posting is mostly correct leading to a mostly correct trial balance. | Posting has several errors leading to a trial balance with several errors. | Posting is done poorly or not at all, leading to inaccurate or no trial balance. | ||||||||
| Step 4 —Adjusting Journal Entries (20 points) | ||||||||||||
| Steps 5 and 6 —Posted and Adjusted Trial Balance. (10 points) | Posting is mostly correct leading to a mostly correct trial balance. | |||||||||||
| Step 7 —Financial Statements (20 points) | All four financial statements are prepared accurately and in an appropriate format. | Three of four financial statements are prepared accurately and mostly in an appropriate format, one statement has some errors. | Two of four financial statements are prepared accurately and mostly in an appropriate format, two statements have some errors. | One or fewer of four financial statements are prepared accurately and mostly in an appropriate format, three or all statements have some errors. | ||||||||
| Step 8 —Closing Journal Entries (10 points) | ||||||||||||
| Steps 9 and 10 —Posted and Post-closingTrial Balance. (10 points) | ||||||||||||
| NSW: Needs Significant Work |
Accounting Cycle Project: Instructions
Due at the end of Week 4 (100 points)
The Accounting Cycle Project consists of 10 Requirements for you to complete. All of the information you need to complete the Course Project is located in the attached Excel Workbook.
• There are eight worksheets in the workbook you will need to complete.
• A list of January transactions
• A Chart of Accounts reference sheet
• A Grading Rubric to help explain what is expected.
• Each worksheet has the Check Figures embedded as a comment.
Scenario:
Moonlight Bay Inn is incorporated on January 2, 2017, by its three owners, each of whom contributes $20,000 in cash in exchange for shares of stock in the business. In addition to the sale of stock, the following transactions are entered into during the month of January: (See January Transactions Tab)
Additional Guidelines:
1. Complete the Accounting Cycle project using the attached excel workbook. The workbook must be used to complete this project (no points will be given if submitted in a different format or file).
2. Please make sure to save the file with your name before uploading.
3. Helpful Resources
a. In Cengage under the ‘Study Tools Tab’ you can access resources such as Tell Me How and Show Me How Videos as well as practice exercises.
b. You can search Google or YouTube for videos explaining how to input formulas/calculations into Excel
*If you have any question about completing this project, please email your instructor.
RUBRIC
|
Criteria |
|
Exemplary |
Proficient |
Developing |
NSW |
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|
Parts: |
|
90% to 100% |
70% to 89% |
50% to 69% |
Less than 50% |
||||||||||||
|
Step 1 —Journal Entries (20 points) |
Journal entries use accurate accounts and amounts; and debits and credits are used correctly. |
Journal entries mostly use accurate accounts and amounts; and debits and credits are used correctly. |
Journal entries have some errors in use of accounts and amounts; and debits and credits are only somewhat used correctly. |
Journal entries have some errors in use of accounts and amounts; and debits and credits are not used correctly. |
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|
Steps 2 and 3 —Posted and Unadjusted Trial Balance. (10 points) |
Posting is correct leading to an accurate trial balance. |
Posting is mostly correct leading to a mostly correct trial balance. |
Posting has several errors leading to a trial balance with several errors. |
Posting is done poorly or not at all, leading to inaccurate or no trial balance. |
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|
Step 4 —Adjusting Journal Entries (20 points) |
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Steps 5 and 6 —Posted and Adjusted Trial Balance. (10 points) |
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|
Step 7 —Financial Statements (20 points) |
All four financial statements are prepared accurately and in an appropriate format. |
Three of four financial statements are prepared accurately and mostly in an appropriate format, one statement has some errors. |
Two of four financial statements are prepared accurately and mostly in an appropriate format, two statements have some errors. |
One or fewer of four financial statements are prepared accurately and mostly in an appropriate format, three or all statements have some errors. |
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Step 8 —Closing Journal Entries (10 points) |
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Steps 9 and 10 —Posted and Post-closing Trial Balance. (10 points) |
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NSW: Needs Significant Work |
